Source: Sinn Féin
25 June, 2019 – by Eoin Ó Broin TD
Sinn Féin Housing spokesperson Eoin Ó Broin TD has commented on the findings of a new report on housing affordability from the EY-DKM Economic Advisory. The report looks at two barriers to first time buyers accessing home ownership, the ability to afford the mortgage repayments on the home and the ability to save the 10% deposit required. Based on this analysis the report found that in 46% of the 26 counties home ownership is unaffordable for first time buyers on average incomes.
Deputy Ó Broin said:
“The report by the EY-DKM Economic Advisory supports what many stakeholders have being raising. High house prices coupled with rising rents is pushing home ownership out of reach of many first-time buyers on average incomes.
“The authors of the report highlight how in nine out of the 26 counties, housing was unaffordable based on the ability to raise a deposit of 10% of the median house price. Seven counties were unaffordable based on the ability to repay the mortgage if buyers were successful in saving the deposit.
“For example, in some counties, it could take more than 10 years to save enough, due to both high house prices and rental costs. In Meath, Wicklow and Kildare in could take up to 15 years.
“While this report analyses affordability based on average wages, it the situation is analysed using median incomes the affordability gap would be starker.
“The CSO itself acknowledges that assessing median incomes is more useful than mean as it is not as skewed by very high or low salaries.
“The government needs to focus on delivering affordable homes for people on median incomes, whether this is affordable rental or affordable purchase homes, on public land.
“Data has shown that the market cannot and will not provide homes workers on median incomes and they will continue to struggle to afford a home to rent or to buy on the private market.”